Principles of Microeconomics California Edition 2nd Edition
Principles of Microeconomics California Edition 2nd Edition
2nd Edition
ISBN: 9780393622089
Author: Dirk Mateer, Lee Coppock
Publisher: W. W. Norton
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Chapter 15, Problem 1QR
To determine

Explain why garbage collectors do sometimes make more than furniture movers.

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Explanation of Solution

Due to the nature of garbage, it is more unpleasant to lift garbage into a truck than it is to lift furniture into the truck. Thus, in order to attract people to work as garbage collectors, a positive compensating differential has to be offered. Therefore, this positive compensating differential increases the wages for garbage collectors more than furniture movers.

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